IMHO, this company has strong fundamental with growing revenue and profit. My only concern is valuation and their shareholders. Not to offend you, but their valuation seems to be fully valued right now (10x PE), unless they give more dividends to justify higher valuation. But this is not a big issue, since the company is growing and valuation will fall.
The biggest issue is their shareholders. Willowglen is controlled by OLH family, which happens to be the same shareholder for OSK, OSVI, OSKProp, and PJDev. It seems that all these companies paid meagre dividends and the way the treat minority shareholders is horrible. They are influential in board members since almost all family members are appointed as BOD.
This stock is starting to get noticed by the funds. At least 2-3 funds own it including Eastspring smallcap and KAF Vision fund. Only a matter of time I think before it moves up
EY is below 10% when share price touch RM 1.00. Time to decide to hold or to sell. Perhaps this is the only factor that we can control. Other uncontrollable factors "will take care of itself". Happy investing.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
azlan88
509 posts
Posted by azlan88 > 2015-03-05 11:01 | Report Abuse
Dear YiStock,
IMHO, this company has strong fundamental with growing revenue and profit. My only concern is valuation and their shareholders. Not to offend you, but their valuation seems to be fully valued right now (10x PE), unless they give more dividends to justify higher valuation. But this is not a big issue, since the company is growing and valuation will fall.
The biggest issue is their shareholders. Willowglen is controlled by OLH family, which happens to be the same shareholder for OSK, OSVI, OSKProp, and PJDev. It seems that all these companies paid meagre dividends and the way the treat minority shareholders is horrible. They are influential in board members since almost all family members are appointed as BOD.
Trade/invest wisely..